The initial grind is pretty annoying. But you only really need a stack of plutonium (to recharge life support, weapon/tool and launch thrusters) as its the most efficient and some carbon to talk to aliens. Iron is also useful for bypass chips (to use those orange beacons to find interesting locations) but it's so easy to find you don't need to maintain any inventory of it. You initially need some other stuff to fix the ship yet beyond that you might as well swap your tools for better ones while exploring instead of looking for materials to add upgrades yourself. They're not transferable and trading up to a better multi-tool and ship is more productive.
Best bet is to collect words early on, they don't take up space :) Sell the rest for money, don't wander too far from the ship for protection and to recharge. If you get hostile ships in space, boost down to a planet or into the space station to get rid of them. Sentinels won't follow you inside structures or you can fight them off while popping back in the ship for a quick shield recharge. You can also lose them in caves.
Later on when you have some room to store things you can start maintaining stock of different mats for crafting. The need for more space never goes away though. My 48 slot ship is already almost full again, 15 slots used for engines, weapons and upgrades, 31 slots used for stuff, 2 free :/ Upgrading the exosuit for more space atm, it can also go up to 48. (only 19 so far)
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